U.S. house­holds with income of more than $150,000 a year have an unem­ploy­ment rate of 3.2 per­cent, a level tra­di­tion­ally defined as full employ­ment. At the same time, middle-​​income workers are increas­ingly pushed into lower-​​wage jobs. Many of them in turn are dis­placing lower-​​skilled, low-​​income workers, who become unem­ployed or are forced to work fewer hours, the analysis shows.

This was no ‘equal oppor­tu­nity’ reces­sion or an ‘equal oppor­tu­nity’ recovery,” said Andrew Sum, director of the Center for Labor Market Studies at North­eastern Uni­ver­sity. “One part of America is in depres­sion, while another part is in full employment.”

The find­ings follow the government’s tepid jobs report this month that showed a steep decline in the share of Amer­i­cans working or looking for work. On Sunday, Pres­i­dent Barack Obama stressed the need to address widening inequality, warning that pro­posed budget cuts will worsen the gap.

Read the article at NPR →